ABUJA — The Federal Government has announced that electricity distribution companies (DisCos) that fail to meet performance standards will lose their operating licences when they expire in 2028.
Minister of Power, Chief Adebayo Adelabu, disclosed this on Monday during a power sector panel at the Nigerian Economic Summit 2025 held in Abuja. The session, titled “Uninterrupted Power Supply: The Industrial Imperatives,” convened major stakeholders from across the energy industry.
Adelabu said the government will no longer tolerate inefficiency from DisCos, describing them as a significant obstacle to stable electricity supply nationwide.
“The distribution companies need to sit up. They remain a major bottleneck in the sector, and the government is determined to ensure they meet expectations,” he stated. “Their licences expire in two years, and there will be critical reforms before any renewal.”
The minister warned that only companies that demonstrate technical capacity, financial stability, and commitment to improving service delivery will retain their licences.
“Those that fail to prove competence or act in the nation’s best interest will be replaced,” Adelabu said. “We are also focused on ensuring that every Nigerian household is metered within the next three to five years. No stone will be left unturned.”
Addressing the N4 trillion debt owed to power generation companies (GenCos), Adelabu revealed that President Bola Tinubu had approved a ₦4 trillion bond to settle verified GenCo and gas supplier debts. He added that a new targeted subsidy framework is underway to protect low-income households while moving toward a fully commercialized and sustainable electricity market.
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In separate contributions, Mr. Edu Okeke, CEO of Azura Power, and Mr. Philip Mshelbila, Managing Director of Nigeria LNG Limited, both highlighted the need to enhance liquidity within the power sector.
Okeke dismissed concerns about gas payments being made in dollars, saying such issues were minor compared to broader systemic problems.
Mshelbila emphasized that a transparent and competitive gas pricing system would encourage more investment in gas production for electricity generation, ultimately strengthening Nigeria’s power supply chain.
